NSW opposition leader Jodi McKay says suspended state Labor general-secretary Kaila Murnain should be awarded her statutory entitlements when her departure from the party is finalised.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
But Ms McKay refused to be drawn on speculation Ms Murnain's severance package could be confirmed by Thursday, saying she was "waiting to see what transpires".
Ms Murnain stood aside from her job in August after revealing to the Independent Commission Against Corruption she failed to act on information Chinese billionaire Huang Xiangmo had donated to the party.
She said former upper house MP Ernest Wong told her in September 2016 about Mr Huang's illicit donation but was encouraged by lawyers to keep quiet.
Mr Huang is accused of being the true source of $100,000 in Labor cash donations from 12 people to a 2015 Chinese Friends of Labor dinner.
Media reports on Thursday suggested Ms Murnain could receive a severance package as large as $700,000 within the week.
Ms McKay admitted discussions were taking place between lawyers for both Labor and Ms Murnain, but said she knew little of their content.
"When she came into that role she was 27-years-old and she made a terrible error of judgment," Ms McKay told reporters on Wednesday.
"My view is that there are statutory entitlements anyone would be entitled to, and they should be paid to her.
"There is a view that above and beyond that, there should be no payment. I'm waiting to see what transpires today or tomorrow."
Ms McKay reiterated a new general-secretary would not be named until the completion of a review into the NSW Labor office, conducted by former commonwealth attorney-general Professor Michael Lavarch.
The first stage of the review would examine the role and responsibilities of the general-secretary, while the second would focus on lax office processes.
Prof Lavarch's first series of recommendations are expected in November.
"Kaila is suspended but she's still in this position. No one will be appointed as general-secretary until this work has been done," Ms McKay said.
"This has to be about getting a better outcome for our general-secretary. There is far too much power vested in that role.
"It may be that there are two positions, that the current role is split."
Australian Associated Press
